Proposed Elimination of HOME Program Threatens 1.3 Million Affordable Homes

A proposal championed by former President Donald Trump and supported by House Republicans aims to eliminate the HOME Investment Partnerships Program, a federal initiative crucial for affordable housing development. This move could jeopardize over 1.3 million affordable homes nationwide, with a significant impact on rural districts that heavily supported Trump in the 2024 election.

The HOME program, established in the 1990s, provides flexible block grants to states and localities. These funds are used, often in partnership with local nonprofit groups, to build, buy, or rehabilitate affordable housing for rent or homeownership, and to provide direct rental assistance to low-income individuals. An Associated Press analysis found that more more than 540,000 of the homes funded by the program are located in rural areas, with 84% of these in districts that voted for Trump last year.

Experts warn that discontinuing the program would severely undermine housing efforts, particularly in regions like Appalachia and various small towns. Cassie Hudson of Partnership Housing in Owsley County, Kentucky, noted that her organization's production of single-family homes has already fallen to 25% of former levels due to funding challenges. Joshua Stewart of Fahe, a coalition of Appalachian nonprofits, emphasized that in deeply rural and impoverished areas, local housing developers relying on HOME are often the only source of new affordable homes.

The proposed cuts have elicited concern from some of Trump's own voters. Heather Colley, a Tennessee mother who voted for Trump and benefited from the HOME program, stated, > "Maybe they don’t realize how far-reaching these programs are." She added, "I understand we don’t want excessive spending and wasting taxpayer dollars, but these proposed budget cuts across the board make me rethink the next time I go to the polls.”

The political landscape surrounding the program is divided. While House Republicans align with Trump's call to eliminate HOME, Senate Republicans have included funding for the program in their draft budget. The Department of Housing and Urban Development (HUD), which administers HOME, has suggested the program is not as effective as others, advocating for fund reallocation.

However, housing advocates argue that reducing HOME funding would significantly impede the creation of new affordable housing supply. Tess Hembree, executive director of the Council of State Community Development Agencies, highlighted that past temporary reductions in HOME funding, such as a cut to $900 million in 2015, led to long-term negative consequences for housing supply. The program also plays a vital role in complementing other initiatives, with the Low Income Housing Tax Credit (LIHTC) utilizing HOME grants for 12% of its units, totaling 324,000 individual units, according to soon-to-be-published research. Tim Thrasher, CEO of Community Action Partnership of North Alabama, affirmed, "It's LITHC plus HOME, usually." Sarah Halcott, a grant administrator with Creative Compassion, expressed concern for clients battling rising housing costs, stating, "This is just another nail in the coffin for rural areas." Carol Gundlach, Senior Policy Analyst at Alabama Arise, warned that if the budget proposal passes as written, "we’ll see an epidemic of homelessness in Alabama and all over the country."